How to Know When to Sell Your Crypto

When Is It Best to Sell crypto?

You should consider selling your cryptocurrency in the following circumstances:

there are signs that the price is unlikely to recover

Sometimes there is no other option but to cut your losses, and you need to recognize the signs when they appear. These could include a consistent drop in value over an extended period, combined with other factors such as stalled project development, or a steady, ongoing reduction in the size of the community.

The value has already risen substantially

At the other end of the spectrum, if the value of the coin has already doubled or even tripled, this might be a great time for a partial sale. If you keep a portion of your investment, just selling the amount of your original purchase, you can ensure that even if the price later tanks you have not lost any of the initial capital investment.

Your capital could be more profitably invested elsewhere

Blockchain technology is developing at an incredible rate. New altcoins are emerging all the time, offering ground-breaking utilities, and exciting investment opportunities, particularly for anyone getting in on the ground floor. If a new project is making your crypto investment obsolete, it’s a good time to consider selling.

When Is It Best Not to Sell crypto?

Just as it is important to know when to throw in the towel, it is equally important to know when to hold on to your crypto investment.

The price is well positioned to bounce back

A coin can fall in value for all kinds of reasons, and this alone should not be a reason to sell. For example, if a coin has a strong utility, robust ongoing development and a loyal core community but is suffering from a price dip, it may be worth holding on or selling just a portion of your investment.

The sale will have tax implications

When a cryptocurrency has risen in value, the profits may be taxed. However, if you have held the asset for over a year, the profits will be considered long-term gains and have lower tax rates. If at the time you are considering selling you are near the one-year mark, it may be worth waiting, so as to pay less tax.

How to Profit from a Sale in All Market Conditions

A new, one-of-a-kind exchange feature is now being offered by ArbiSmart, a popular EU authorized, interest-generating wallet and exchange. The new feature pays triple the current market value on the sale of all the platform’s 25 supported cryptocurrencies, except for RBIS, the native token on which you earn ten times the current market rate. All cryptocurrencies are sold into EUR except for RBIS, which can be sold into EUR or USDT.

There is a catch though, as certain conditions apply. To receive the preferential rate, you need to sell a minimum amount, which is different for each cryptocurrency and comply with a 24-month vesting period, before the profits from the sale can be withdrawn.

For example, if you sell €1,500 worth of Shiba Inu, €4,500 will instantly be credited to your account, which will become eligible for withdrawal once the vesting period is complete.

So, you aren’t just receiving an extra 200% above market value on every single crypto sale, but you are also shielding your crypto investment. If you are locking in a profit by selling a coin that has already doubled in value, you will be earning five times your original investment. Equally, if your cryptocurrency has dropped in price, by selling you are preventing any further losses, while actually making money on a sale that via any other exchange would have resulted in a deficit.

Want the opportunity to benefit financially, whenever you choose to sell your crypto?

Check out the ArbiSmart sale reward feature.

*This article was paid for. The Cryptonomist did not write the article or test the platform.

Source: https://en.cryptonomist.ch/2023/05/10/how-know-when-sell-crypto/